Event recap: TRUMP token and Trump's dinner

Recently, holders of the TRUMP token became the focus of the cryptocurrency community. According to the event rules, TRUMP token holders have the opportunity to attend a dinner hosted by Trump

Recently, the story of TRUMP (TRUMP) token holders being invited to dinner with Trump has sparked heated discussion within the cryptocurrency community. As the event’s terms were disclosed, TRUMP token holders were informed that they could join Trump for dinner if they met certain criteria. However, a TRUMP token holder named Morten Christensen shared an astonishing secret: he and four of his friends participated in this dinner nearly for ‘free’ through a unique trading strategy.

How did they do it? It all started with Christensen and his friends buying TRUMP tokens while simultaneously shorting the exact same amount. The essence of their strategy was to buy TRUMP tokens during the event period and short the same amount of tokens. This way, no matter if the token price went up or down, their position value would not be affected. They would keep this hedged position throughout the event until the event results were announced. After the event results were announced, they immediately sold the TRUMP tokens in hand and closed out the short positions.

Since the value of their holdings remained largely unchanged during the event, the actual amount they spent was mainly just trading fees. According to Christensen, each of them only paid about $1200, which was mainly for trading fees.

This strategy allowed them to almost ‘freely’ gain the opportunity to attend Trump’s dinner, which other participants might need to pay tens of thousands of dollars to achieve.

This incident provides us with some interesting insights. Firstly, it highlights the power of hedging strategies. In a highly volatile market like cryptocurrencies, the effects of hedging trades can be significant, especially when combined with rapid price movements.

Secondly, it shows a potential loophole in the event’s terms. The event organizers might not have fully considered the implications of participants engaging in advanced trading strategies like shorting and arbitrage when setting the event’s terms. This led to an unexpected outcome where participants could attend the dinner at a minimal cost.

Moreover, this story showcases the intelligence of investors when faced with a complex market and event rules. Christensen and his friends were able to identify an opportunity and devised a clever trading strategy to achieve their goal, which might inspire other investors to think outside the box and come up with new trading ideas in the dynamic cryptocurrency market.